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Major Construction Decision Holds that CASPA Does not Apply to Government Entities

The Commonwealth Court came out with a hallmark case in Pennsylvania construction law on March 6, 2015, definitively holding that the Prompt Payment Act applies to government entity owners and CASPA does not. East Coast Paving & Sealcoating, Inc. v. North Allegheny School District, No. 751 C.D. 2014, ___ A.3d ___ (Pa. Cmwlth. 2015). (This opinion is attached below for easy reference and review.) The Court reached this conclusion through analyzing not only the plain language of the text (the Prompt Payment Act explicitly calls out payments made by a "government agency," whereas CASPA calls out payments made by an "owner" or "party"), but also by comparing the threshold requirements to receive attorneys fees and penalties under both Acts. The requirements to impose penalties and attorneys fees under CASPA are relatively lower, requiring a showing that payments were "wrongfully withheld" and that the contractor has "substantially prevailed in litigation." The Prompt Payment Act requires an outright showing that the government agency acted in bad faith.

The Court reasoned that the legislature could not have intended equal application of CASPA and the Prompt Payment Act to government agencies, as such an application would effectively render the Prompt Payment Act, with its higher burdens, meaningless. If the law were so, savvy plaintiffs would always choose to pursue their claims through CASPA, as it would be easier to obtain attorneys fees and penalties against a non-paying contractor/owner.

Of note, the Commonwealth Court also issued an important caveat in a footnote, directing the bar's attention to the fact that Supreme Court will soon be issuing a decision on the matter - meaning that this Commonwealth Opinion's precedential reign may be short lived. The Court noted that "[T]he Pennsylvania Supreme Court has granted the Third Circuit's Petition for Certification of a Question of State Law in order to answer whether, under Pennsylvania law, CASPA applies to a project where the owner is a governmental entity.' Until then, the Commonwealth Court's opinion stands. Going forward, a Pennsylvania state court plaintiff must make sure that he raises the applicable Act in his Complaint, depending on the identity of the defendant.

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Firm shareholder Henry Sneath's article "The New Federal Defend Trade Secrets Act of 2016" was published in the 2016 Fall/Winter edition of USLAW Magazine.

Firm shareholder Henry Sneath's ed a CLE on the New Federal Defend Trade Secrets Act of 2016 for the Western Pennsylvania chapter of the Association of Corporate Counsel

Firm shareholder Alan Miller was named as the 2017 Best Lawyer Environmental Litigator of the Year and also was named a 2016 Super Lawyer in Insurance Coverage.

Firm shareholder Henry Sneath was named a 2016 Super Lawyer in Intellectual Property Litigation; firm shareholder Anthony Picadio was named a 2016 Super Lawyer in Business Litigation; firm associate Brandon McCullough was named a 2016 Super Lawyer Rising Star in Insurance Coverage.

On May 25, 2016, Firm shareholder Jeff Ludwikowski presented "Voir Dire and Jury Selection" with Honorable Ronald Folina, at the Crowne Plaza Pittsburgh, as part of the National Business Institute's Continuing Education Programs.

Firm shareholder Henry Sneath and firm associate led and presented at a 2-hour CLE on "Defend Trade Secrets Act (DTSA): The New Federal Private Cause of Action for Trade Secret Misappropriation."

Firm shareholder Kelly Williams spoke at the USLAW Business to Business Litigation Exchange in San Francisco on Prosecuting and Defending Business Defamation and Commercial Disparagement Claims by or Against Competitors Including Social Media Issues.

Firm shareholder Jeff Ludwikowski spoke on "Wacky Pennsylvania Construction Laws" at the U.S. Law Network Spring Conference in Rancho Palos Verdes California, which took place on April 7-9, 2016.

Firm shareholder Jeff Ludwikowski was selected to serve a two year term as Education Coordinator for the Construction Law Section of the U.S. Law Network.

Firm shareholder Bridget Gillespie and firm associate Brandon McCullough served as Regional Editors and Co-Authors of the Pennsylvania Chapter of the DRI Duty to Defend Compendium which was published in February 2016.

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Picadio Sneath Miller & Norton, P.C., is a Pittsburgh law firm that serves clients primarily in Pennsylvania, but also in other jurisdictions on a special admission basis.